Keeping your investors up to date in a structured format helps keep your time free from random inquiries and it forces you to reflect on your progress and needs. Being forced to summarize your wins, challenges and asks helps you plan better for your next goals. As fund managers, we keep to this practice with a structured quarterly update to our LPs. We understand the effort that goes into these updates and realize their benefits as well.

At a high-level portfolio companies should cover the following points:

  • Short letter to the investors summarizing the stats and numbers provided signed by the founders. This paragraph should frame the mindset of the reader for all the details they are about to review.
  • Asks
  • Thank Yous!
  • High Level Summary
  • KPIs Update
  • Product/Design Update
  • Housekeeping Finances

Below is an example of an ideal summary that has been provided by our portfolio company Planted. They send their update monthly and quarterly. The quarterly update includes the update from the month.

They are consistent with their format and I always know how to help based on this regular delivery. Remember investors want to help you and this is a great tool to get there help.

Subject: CompanyName UpdatesMonth Year

  • This is helpful for searching email and it is clear what month we are reviewing. Quarterly updates include the quarter number and year.

Short letter to investors

  • Greeting
  • Short Summary of the past month or quarter (2-4 sentences)
    • What you achieved
    • How you did it
    • Any market influences
  • Short summary of where you are going (2-4 sentences)
    • Expected growth
    • Any big wins
    • Things you are looking forward to
  • Any last thoughts
  • Signed by founders

Asks

  • Specific asks – Provide Context and be direct on asks

Monthly or Quarterly Summary

  1. HighLevel Summary
    1. Great Talk about your big wins here; something to be top of mind and memorable
    2. Good Positive news but not ground breaking achievements go here.
    3. Bad Anything bad here: missed goals, team challenges, etc. and include how you are planning to remedy or address the concern or issue.
  2. Monthly KPIs What are the top four KPIs you track that drive your business growth? Report on these KPIs monthly and examine how these numbers changes and why. What does that mean to your business? What does it mean for your goals?
    1. Gross Revenue: $XYZK (+/- 000%)
    2. # of _KPI_: 123 (+/- 000%)
    3. # of _KPI_: 123 (+/- 000%)
    4. # of _KPI_: 123 (+/- 000%)
    5. # of _KPI_: 123 (+/- 000%)
  3. Product/Design
    1. Recap Current updates or new features added to the product and why it is good for your business. Each update or feature is a bullet point
      1. Update
      2. Feature
    2. Next Month New features that will be built or improved on and if needed, what impact will it have on your business?
      1. Next build
      2. Next build
    3. Housekeeping
      1. Finances
        1. Cash in bank
        2. Monthly Burn
        3. Runway

Closing Signature and Contact Details

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